Outback power rises defended by SA Government

Energy Minister Michael O'Brien says the South Australian Government will not back away from an increase in outback electricity prices.

Authorities have cited the rising costs of electricity supply and increased grid prices.

The Energy Department says it has identified 10 businesses that would face rises of 50 to 80 per cent.

Business owners warn outback tourism will suffer and say it could force people to move away from outback areas.

Mr O'Brien said he did not believe the rise would close businesses.

"There is an element of personal choice in all of this. Some people have made a decision that they're going to set up businesses in Coober Pedy or they're going to live in Coober Pedy and there are costs associated," he said.

"The State Government is subsidising their decision to operate businesses to the tune of $5.5 million a year.

"When all said and done, if there wasn't a subsidy they would be having to find an additional $5.5 million. The taxpayers of South Australia are effectively underwriting the cost of running their businesses."

Managing director of the Opal Inn accommodation group, Robert Coro, said he had calculated he would now be paying $700,000 per year for electricity, a rise of 130 per cent.